Innovation.Read more on how the U.S. capacity to innovate could play a chief role in economic growth.

Debt and Deficits

Rising State-Local Government Revenues Slow Layoffs

Declining tax receipts during the recession forced state and local governments to lay off workers, but Bloomberg reports that rebounding revenue is stabilizing public payrolls and even allowing some municipalities to begin rehiring. While many governments still face budget challenges, arresting the overall decline in state and local public employment will aid economic recovery, especially with looming federal budget cuts.

As the United States continues to run budgets with high deficits, politicians debate different plans to reduce government costs and to raise revenue. This CFR Backgrounder by Jonathan Masters outlines the competing policy paths on federal fiscal reform, and the global consequences for failing to bring down U.S. debt.

The new report of the CFR Independent Task Force on U.S. Education Reform and National Security highlights the importance of the Common Core State Standards and asserts that fixing the nation’s underperforming K-12 schools is critical to economic competitiveness and national security.

International Trade and Investment

Mexico Eager to Join TPP Talks

Reuters reports that Mexican President Felipe Calderon reiterated his nations desire to join the Trans-Pacific Partnership (TPP) trade talks. The TPP was originally a proposed free trade agreement between just Brunei, Chile, New Zealand and Singapore, but the negotiating group has grown to nine nations—including the United States, Australia and Vietnam—with Mexico, Canada and Japan each trying to secure a spot. By pursuing TPP, experts say the United States can regain the initiative in trade liberalization, while regional, multilateral FTAs may divert attention from the global WTO process.

This CFR Independent Task Force report encourages the Obama administration and Congress to adopt a “pro-America” trade policy that brings to more Americans the benefits of global engagement

Corporate Regulation and Taxation

Financial Regulators Look beyond Banks

The Financial Stability Oversight Council (FSOC) unanimously approved a new classification rule to deem some nonbank financial firms as “systemically important.” Under powers granted by the Dodd-Frank Act (NYT), the FSOC will target firms for greater oversight that hold more than $50 billion in assets and meet any of the thresholds in areas such as debt, leverage or derivatives. While large institutions such as Berkshire Hathaway, GE Capital and KKR brace themselves for greater oversight, some critics argue that too many players in the “shadow banking” system will avoid regulation.

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About This Blog

The United States faces enormous challenges created by an increasingly dynamic and competitive global economy. This blog offers a portal to the Renewing America initiative, which sponsors research, analysis, policy ideas, and dialogue on how best to revitalize the country's economic strength and build the foundations for future prosperity and influence.

New Independent Task Force Reports

India now matters to U.S. interests in virtually every dimension. This Independent Task Force report assesses the current situation in India and the U.S.-India relationship, and suggests a new model for partnership with a rising India.

Rates of heart disease, cancer, diabetes, and other noncommunicable diseases (NCDs) in low- and middle-income countries are increasing faster than in wealthier countries. The report outlines a plan for collective action on this growing epidemic.

The authors argue that the United States has responded inadequately to the rise of Chinese power and recommend placing less strategic emphasis on the goal of integrating China into the international system and more on balancing China's rise.

Campbell evaluates the implications of the Boko Haram insurgency and recommends that the United States support Nigerian efforts to address the drivers of Boko Haram, such as poverty and corruption, and to foster stronger ties with Nigerian civil society.